Airlangga Welcomes BI's Decision to Hold Interest Rate: Could Boost Lending

Coordinating Minister for Economic Affairs Airlangga Hartarto has expressed the government’s appreciation for Bank Indonesia’s (BI) decision to hold its benchmark interest rate after three consecutive months of increases totalling 100 basis points.

“Yes, it’s good. So we appreciate BI holding the interest rate, because this interest rate is important for the real sector, to be able to move,” he said when met at the Coordinating Ministry for Economic Affairs office on Wednesday (22/7/2026).

With this decision, Airlangga is confident that the maintained interest rate can encourage growth in the lending sector. “The maintained interest rate can encourage growth in the lending sector,” he stressed.

In its rate decision, BI Governor Perry Warjiyo stated the central bank is expanding incentive policies and a number of other policies to increase foreign portfolio investment inflows and strengthen rupiah exchange rate stability, accelerate money market and foreign exchange market deepening, as well as increase liquidity and reduce liquidity segmentation in the money market and banking.

“The BI-Rate decision and other policies referred to are an integrated part of Bank Indonesia’s policy mix, which remains consistent in further strengthening rupiah exchange rate stability amidst persistently high global uncertainty, and to maintain inflation in 2026 and 2027 within the government’s target range of 2.5±1% (‘pro-stability’),” Perry said.

Meanwhile, he confirmed that macroprudential policy and payment system policy remain directed to support growth (‘pro-growth’).